No. 32 On January 1, 2021, Inkjet Company acquired 40% of GICCompany by purchasing 8,000 shares for P1,440,000. On thedate of acquisition, Inkjet calculated that its share of the excessof the fair value over the book value of GIC's depreciable assetswas P150,000 and that the purchased goodwill was P120,000.At the end of 2021, GIC reported profit of P450,000 and paiddividends of P7.00 per share. Inkjet depreciates its depreciableassets over a 12-year remaining life.What is the amount of income Inkjet Company would reportfrom its investment in GIC for the year ended December 31,2021?P172,600P167,500P105,500P 56,000а.b.c.d.

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What is the amount of income Inkjet Company would report from its investment in GIC for the year ended December 31, 2021?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received $12,000,000 in net assets. In 2016, the market value of the goodwill obtained from Branta Corp. was valued at $4,000,000, but in 2017 it dropped to $2,000,000. Prepare the journal entry for the creation of goodwill and the entry to record any impairments to it in subsequent years.
On January 1, 2021, Herwin Company acquired 40%of GIC Company by purchasing 8,000 shares for P1,440,000. On the date of acquisition, Herwin calculated that its share of the excess of the fair value over the book value of GIC's depreciable assets was P150,000 and that the purchased goodwill was P120,000. At the end of 2021, GIC reported profit of P450,000 and paid dividends of P7.00 per share. Herwin depreciates its depreciable assets over 12-year remaining life. What is the amount of income Herwin Company would report from its investment in GIC for the year ended December 31, 2021? A P105,500 в) Р56,000 P167,500 D P172,600
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